I was wondering, in the state of tennessee, if you were to win a big lottery and had the taxes taken out for a lump sum payment, would you have to show the winnings as income on your year end taxes?
2007-05-12 17:21:41 · 4 answers · asked by patti p 3 in Business & Finance ➔ Taxes ➔ United States
Yes, you'd show the winnings on your tax return, and your tax for the year is figured on your entire taxable income including the lottery winnings. The amount taken out would be shown as withholding. From there it works just like any other return - if too much was withheld, you get the extra refunded - if not enough was withheld, you have to pay the difference.
2007-05-13 03:52:18 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
yes
actually you'd get a tax form sort of like a W-2 that would show how much they took form your winnings. You'd have to file a tax return and report this because it would also be reported to the IRS. Besides, maybe you'd get a tax refund from the amount withheld,
2007-05-13 00:44:40 · answer #2 · answered by Jo Blo 6 · 0⤊ 0⤋
Yes, on both state and federal taxes. But if you already had the taxes taken out, you'd get a credit for that amount.
2007-05-13 01:08:56 · answer #3 · answered by dcgirl 7 · 0⤊ 0⤋
Of course! It's just withholding, no different from your paycheck, and you still have to settle up at the end of the year.
2007-05-13 01:17:13 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋